Tax Transparency

The Extractive Sector Transparency Measures Act (the Act) was enacted on December 16, 2014 and brought into force on June 1, 2015. The Act delivers on Canada’s international commitments to contribute to global efforts to increase transparency and deter corruption in the extractive sector by requiring extractive entities active in Canada to publicly disclose, on an annual basis, specific payments to all governments in Canada and abroad. For more information on the Act, please see the Natural Resources Canada website.

Turquoise Hill’s reputation for acting responsibly plays a critical role in our success as a business and our ability to generate shareholder value. We are committed, in principle and in practice, to maximum transparency consistent with good governance. Our 2016 filing is enclosed. This is the first year that extractive entities in Canada have been required to disclose specific payments to governments in Canada and abroad.

For 2015 and 2016, Oyu Tolgoi was recognized as the #1 taxpayer company in Mongolia. As one of Mongolia’s leading employers, Oyu Tolgoi is proud to contribute its part to the country’s economy.

Oyu Tolgoi discloses taxes, fees and other payments that it pays to the Government of Mongolia on a quarterly basis. Rio Tinto also discloses annually taxes paid by Oyu Tolgoi in Mongolia as part of its Taxes Paid report. There will be differences in the data of the various reports due to categories included or excluded in each jurisdiction.